Update: We’ve been alerted that Gasparino was mistaken in his report that Millenium received a subpoena. We’ve altered the post to reflect this.
Update II: We’ve also been alerted that Maverick Capital has not received a subpoena.
Following the issuance of a government subpoena to Steven Cohen’s SAC Capital this afternoon, the authorities continue to probe some of Wall Street’s big money managers. Ken Griffin’s Citadel Investment Management has now also apparently been served with government papers. Here’s a report from Fox Business’ Charlie Gasparino, via the cantankerous bloggers at Zero Hedge:
From Charlie: “They got a subpoena. It’s the same subpoena that sources tell FOX Business Network that Steve Cohen over at SAC Capital got. It’s a wide ranging subpoena and it dates back to 2008 asking for information on certain stocks. From what I understand, it’s not just healthcare stocks, which has been a primary focus. FOX Business Network has learned two other hedge funds have received subpoenas. We have put calls into Millennium Capital Management and Maverick Capital Management and we are waiting to hear back to them.”
(Update: Apparently Millenium was not served with a subpoena, so disregard Charlie on that front. Update II: Maverick Capital has also not received a subpoena.)
Chicago-based Citadel was founded in 1990 and has $15 billion in assets under management.
On Nov. 20, The Wall Street Journal reported that Portland-based analyst John Kinnucan sent the following in an email to SAC Capital Advisors, Citadel, Janus Capital, Wellington Management and MFS Investment Management.
Today two fresh faced eager beavers from the FBI showed up unannounced (obviously) on my doorstep thoroughly convinced that my clients have been trading on copious inside information,” the email said. “(They obviously have been recording my cell phone conversations for quite some time, with what motivation I have no idea.) We obviously beg to differ, so have therefore declined the young gentleman’s gracious offer to wear a wire and therefore ensnare you in their devious web.
As readers can see by clicking the hyperlinked firm names above, just about everyone on Kinnucan’s list has at least fielded some questions in connection with the government inquiry. MFS has said that it hasn’t heard from the authorities.
mtaylor [at] observer.com | @mbrookstaylor